Treasuries edge up ahead of auctions

Markets7/17/2017, 1:15 PM

EPA / MICHAEL REYNOLDS

United States government bonds rose slightly on Monday as investors eyed the upcoming auctions set for later in the day. Market watchers are anticipating the sell-off of 13-week and 26-week bonds worth $39 billion and $33 billion respectively. In the meantime, traders are also eyeing a survey for the Empire State Manufacturing also set for release later today. Lowered expectations of a strong economic expansion created greater demand for US treasuries as many investors began to wonder on the future US Federal Reserve interest rate hike policy.

The yield on 10-year Treasuries declined to 2.316% at 1:08 pm CET, pushing the bond price upwards since bonds and its yields are negatively correlated. Meanwhile, the yield on two-year debt was slightly lower at 1.352% at 12:57 pm CET while the yield on 30-ydear bond edged down to 2.904% at 1:11 pm CET.

In Europe, the yield on 10-year British gilts decreased to 1.277% at 1:12 pm CET whereas the yield of the benchmark bond for the Eurozone, German Bunds of the same maturity, was also in the red at 0.578% at the same time.